A. The nature of securitization

a. Reveal information

b. Alter risk exposure

c. Provide liquidity

B. The mechanisms of securitization

1. The structure of the transaction

2. The special purpose vehicle (SPV) - structure

3. Polling of loans, assets or receivables

4. Credit structuring and credit enhancement

5. Replacing of cash flows

C. Alternative Structures

1. Pay-throughs

2. Asset-backed bonds

3. Pass-throughs

D. The Benefits of securitization

1. Lower-cost financing

2. Equity savings

3. Focus and specialization

4. Reduction of structural risk

5. Elimination of maturity mismatches

6. Diversification

7. Reduction of information costs

8. Transfer of default risk

9. Improve asset/liability management

E. Possible costs

1. Cash flow volatility

2. Shift in asset quality

D. Recent Structures and Developments

1. Credit Cards Backed Notes or Receivalbes

2. Mortgage-backed securities (MBS)

3. Other ABS